tv [untitled] May 12, 2012 11:00pm-11:30pm PDT
choice but to step in and do something. my messages use it or lose it -- my message is use it or lose it and she was quickly what you can do. >> i appreciate those comments and some of the thinking i was doing to the comments section from both rec & park and the public comment is i would think it would be helpful to get much more specific long-term recreational management plans and budget that could be presented to this commission. also some specifics of around how financial resources are going to be secured for recreational activities, how does concession contracts would be developed and secured s rec & park wants to take them on. what are the recreational uses of the lake? we saw the one to have materials for, you might people to get staff for viet money for a but nothing round reel programming. we have not heard anything specific around that and how to
implement not be accepted the lake merced -- lake merced watershed plan. so really for rec & park to come back and say as relates to the boat house what your role would be in the management of those facilities to make the case that you guys could do it since we haven't seen a lot of action in these past years. >> not only does rec & park manager recreational activities, we do the maintenance, custodial and maintenance, landscape maintenance, natural areas, a fair amount of structural maintenance around the lake and it would be helpful to me to understand where this commission is on that issue and whether
those are activities you would like us to continue to do or is that something you would like your own staff to take on? >> that some things that could bring back as a recommendation to us on what that will look like and related costs. >> i agree with that. thank you, commissioners, thank you everyone who came to testify at madame secretary, if you would call -- >> there are two whereas clauses that reference the purpose of the mou and i think your motion should show those as being struck since you are not adopting that. >> i think that was the motion. >> i intend -- consider and adopt a contract rate schedule for the 27 wholesale customers during fiscal year 2012 through
13 and the terms of the 2009 water supply agreement between the city and county of san francisco and wholesale customers. >> and that the chief financial officer and i'm here to describe to you the action item before you which is the consideration of the fiscal 12-13, next year's wholesale water rates. in advance of our rate items, we tend to bring in advance, we brief to two weeks ago on what the staff recommendation was for next year's wholesale rate. i am happy to provide a briefer summary rather than going through this wise or i can go to the slides as well. >> have you received comments or have there been changes made or
proposed in the last couple of weeks? >> we have received no further comments on the staff's proposal. >> commissioners, if you would like a quick update, that would be fine, otherwise we can move to public comment. >> we have already seen this? >> guess. -- yes. >> we support the staff recommendation. >> commissioners, we also support the staff recommendation. thank you. >> commissioners, annie s -- any comments?
moved and seconded. all those in favor? opposed? thank you. it took us less time to do a rate increase for wholesale customers than it did to talk about -- >> item 11 -- approve an increase of 2,000,005 under thousand dollars the previously approved contract cost contingency for constructing -- construction on the alameda side number 44 17 million to under $93,000. authorize the measure to approve measures to the contract. >> i believe this was covered. >> she did cover that and the report. >> if we have any questions.
>> i would like to move this item. >> second. >> moved and seconded. you did an excellent job. we have a motion and a second. your job is done. [laughter] and very well, i might add. do we have any public comment on this item? all those in favor? opposed? the motion carries. thank you. our next item is to go into closed session. madam secretary, if you'd call the items were closed session. >> item 12, public comment on matters to be discussed in closed session. commissioner moran: any public comment on matters to be discussed in closed session? >> there may be one speaker on
item 19. i'm not sure if that is the case. if you want to call back and hear his testimony, he would not have to stay until afterwards. commissioner moran: it is your choice. we do not want to act on to -- on the item until we have had closed session. you will stay? ok. proceed. >> item 13, motion on whether to assert attorney-client privilege regarding the matter is listed below is conference with legal counsel. commissioner moran: all those in favor? >> aye. commissioner moran: the motion carries. >> item 14, conference with a real property negotiator -- pursuant to california government code section 5495 6.8
and san francisco administrative code section 67.8a2, property -- mountain view, brussels 189, 190, 191, and 19s -- >> can you wait until the store is closed? thanks. -- until this door is commissioner moran: the public utilities commission is back in open session. the commission took no action on any item in closed session. i have a motion as to whether to disclose? >> so move. move to not disclosed. >> second. commissioner moran: all those in favor? >> aye. commissioner moran: the motion
carries. madam secretary, item 19. >> item 19, authorizes the general manager to negotiate and execute a memorandum of understanding with the port of san francisco for the puc to continue providing clean, green municipal power at pier 70 and to provide the port $1.5 million if the new shoreside power system at pier 70 increases electric use by 65,625,000 kilowatt hours by 2017. commissioner moran: this was on the prior calendar. we continued it in order to have discussion of related matters in closed session. that has happened. does the commission have any questions? or would you like a presentation from staff? >>no. no. commissioner moran: ok, is there any public comment? thank you for your patience. >> good afternoon, commissioners.
i am year represented the environmental council, which is a coalition of more than 30 in terminations in the bay area. the purpose is to assure that the america's cup is a benefit for san francisco bay and its surrounding habitats, neighborhoods, and historic resources in both the short and long term. the council strongly in support of the pier 70 shoreside project, and we urge the commission to approve the mou. the new shoreside power installation for large ships docking at the shipyard for maintenance and repair will provide dramatic reductions in marine air emissions that will benefit air quality in san francisco and the bay area. project will help offset excess emissions from cruise ships being generated over the next two or three years while shoreside powers decommissioned at pierre's 27-29 due to the america's cup sailing event and construction of the new terminal. the pier 70 project will provide net air quality benefits long after the shore is reconnected.
the environment council supports the project because it addresses concerns that environmental, public health, and neighborhood groups raised about the increased air commission that will be generated by cruise ships that will not be able to hook up to shoreside power until early 2014. the original $5 million shoreside project was funded in part by the sfpuc. we urge you to support the mou and i urge immediate implementation of the project. i want to commend ports that for the excellent work they've done. thank you for keeping us informed as the project moves forward. commissioner moran: thank you very much. any other comment? do we have a motion? >> i move it. >> second. >> all those in favor? >> aye. commissioner moran: oppose? the motion carries. item 20, new business. do we have any new business?
you can see how excited people are for this playground. it is very special. >> on opening day in the brand- new helen diller playground at north park, children can be seen swinging, gliding, swinging, exploring, digging, hanging, jumping, and even making drumming sounds. this major renovation was possible with the generous donation of more than $1.5 million from the mercer fund in honor of san francisco bay area philanthropist helen diller. together with the clean and safe neighborhood parks fund and the city's general fund. >> 4. 3. 2. 1. [applause] >> the playground is broken into three general areas. one for the preschool set, another for older children, and a sand area designed for kids of all ages. unlike the old playground, the
new one is accessible to people with disabilities. this brand-new playground has several unique and exciting features. two slides, including one 45- foot super slide with an elevation change of nearly 30 feet. climbing ropes and walls, including one made of granite. 88 suspension bridge. recycling, traditional swing, plus a therapeutics win for children with disabilities, and even a sand garden with chines and drums. >> it is a visionary $3.5 million world class playground in the heart of san francisco. this is just really a big, community win and a celebration for us all. >> to learn more about the helen diller playground in dolores park, go to sfrecpark.org.
>> kids with special needs have access to a venture on may 5. over 25 businesses and nonprofit organizations build the music concourse with free refreshments, games, and bluegrass. access to a venture is part of sf rec and park's year-round activities in partnership with activities in partnership with families. >> good afternoon, everyone. welcome to the regular meeting of the government audits and oversight committee. my name is supervisor farrell. i'm also joined by supervisor elsbernd. i would like to thank the members of sfgtv for the
broadcast. do we have any announcements? >> please make sure to silence all cell phones and electronic devices. items at the upon today will appear on the may 22 agenda. during on the department's progress on implementation of audit recommendations by the comptroller -- controller. supervisor farrell: we have only one item on the agenda today. >> good afternoon. i am tonia lediju, director of audits. we are here to speak about our audit follow-up for the last quarter. basically, the benefits for
audit work is not only in the findings reported or the recommendations, but the benefits of auditing is the implementation of the recommendations that have come out of the process. by conducting audits -- audit follow ups, it helps the department in sure that they are the implementing the change as stated. it enhances accountability, and it also allows us to ultimately assess the value of our work. our office does two kinds of follow up work, regular and field follow up. our regular procedures are done for all reports and memorandums. they are required to report on the implementation status at 6 months, one year, and two years. in the course of the follow-up process, we may select certain audits for field follow up. in that process, we go back into the department, gathered
evidence, -- to gather evidence. factors that could qualify an audit as a high risk include large financial impacts, significant weaknesses that make the department vulnerable to fraud, safety and high risk of fraud. this follow-up process that we are using also fulfills the requirement of the san francisco charter, which requires the audit to report on plans for implementing the recommendations come at any cost or savings, that is reflected in the department proposed budget, and if relevant, the basis for the department decided not to implement one of the recommendations. on this slide, we will talk about recommendation status and follow-up. after we received a response from the department, and nodded
to reduce the response and based on the departments reported action, makes a determination about whether these actions would resolve the problem underlying the recommendation. open means the recommendation has not been fully implemented. contested means the department indicated it would not implement that recommendation. this could be due to lack of resources. the department believed that the previously existing process is sufficient. closed means of the department has fully implemented the recommendations, the department has implemented a sufficient alternative to the recommendation, or the recommendation is no longer relevant. the recommendation could become a longer relevant because it is related to something specific to a software system or a contract. the fall of status is based on the department's responsiveness to our follow-up request.
active means the department never provided the response to a follow up request. we will continue to follow up beyond our regular two-year cycle. open means the department provided the response. closed means all recommendations and have a status of closed. elapsed, we will present the outstanding recommendations to the committee. outstanding recommendations will also be considered in future audit work. for our regular follow-up program, close does not mean that we attest to the recommendation being fully implemented or has done any investigation to verify the recommendation has been adequately resolved. we only a test of whether our recommendation was adequately resolved when we do a field follow up.
our regular follow-up process is based on what the department reports it has done to implement our recommendations. over the next four slides, i will provide a summary of our regular follow-up activity for the last quarter, january through march. and then i will give an overview of our field follow up activities. i will discuss some high-risk audits in greater detail. these six follow-ups are considered open. we received responses to follow- up request on these audits, but there are still one or more outstanding recommendations that have a status of open or contested. for four of these audits, the department are in process of implementing the outstanding recommendations. for more information about these audits, please see the summary document that is available by the door. it will also be posted to our website. those are airport commission,
human-rights, fire department, public utilities, audits of crystal springs, and the arts commission. the two audits marked by an asterisk will be discussed in greater detail. this table shows the one act of audits. of the 49 recommendations, one was determined to be closed and two in process. associated risks for this audit is high. we have recovered $4,292 in subtenant rent. however, it had not yet collected $120,852 of other funds do. -- due. there are some recommendations to investigate further potential lost revenue due to some of the issues uncovered by the audit.
i apologize -- they have recovered 42,000. >> it has the date of november, 2010. we are talking a while ago? is this an ongoing -- >> we released the report in 2010. we are continuing to follow up on the work. supervisor farrell: thank you. >> this audit was a lease agreement. it is a rock quarry from the least side. modern trends some of this provisions require specialized -- monitoring some of these provisions require specialized knowledge. puc is working with us to identify appropriate vendors. puc is here to discuss this
audit for there. i do not know if you want to do the entire presentation. supervisor farrell: why don't we have puc, so we can deal with it issue by issue? >> good afternoon. i'm joined here today by my colleagues. i am the director of insurance and internal controls. we have taken these recommendations quite seriously and we had implemented a series of actions to directly address the recommendations but management responses have been prepared and they are under current pending review. we would like to share some of our recent actions and successes in the past six months to resolving these findings. in the areas of personnel's
skill sets, lease administration comic industry best practices, and lease administration software. regarding personal skill sets, we retrained existing staff on the software that we have in place and the analytical tools. this includes areas such as payment tracking, timely collections. for a lease administration, we have resolved late payment functionality in the legacy software. we now have the functionality to monitor late payments. we have been visiting the management regarding their adherence to these provisions. we have been in consultation with the city's attorney's office. >> is there any dispute about the money that is owed? is it just a matter of collecting it? >> a little bit of both. there have been some disputes in terms of translating what exactly where the requirements
for the leases. there were expired, up to a certain point. it is still left in discussing right now. if you would like some more in depth details -- regarding industry best practices and the policies and procedures, we did hire a lease administration console to look at the existing operational practices to see if they were in line with industry best practices. we have incorporated some of the recommendations, which have led to the development of a comprehensive manual. that is near finalization. as part of that, we talked to a mining consultant about how exactly the monitored and audit a rock quarry operation. in order to fully understand information, you would require
specialized expertise. we reached out to cities service auditor and we have been working and leveraging their existing auditor pool. supervisor farrell: ok. >> and finally, the lease administration software. we have a system called colonial and it is quite antiquated. it is not very flexible for some of the complex permits and leases that we have. we will be implementing a new software that is used by a lot of private and public agencies. it will give us the ability to monitor such complex provisions. eventually, will replace the existing legacy system by the end of the calendar year. supervisor farrell: new software, great. i get it. we need a lot of that inner city government. mining consultant, i understand. the other stuff, about how to
collect -- manuals are great, but let's collect the money that is owed to us. how comfortable do you feel going into the future about being able to do that effectively? this is billing practices. it happens every day all over the world. >> she has been working very closely with staff to ensure that these practices are being adhered to and being done in the division itself. those practices, everyone is aware. they are doing that. in regards to the audit, we still are in discussion with management to collect the remaining amounts. we have also been in discussion with the city attorney's office to talk about how much of this is applicable,, time has passed, what is applicable and what is not. supervisor farrell: ok.
colleagues, any questions? is there more? thank you very much. tonia, are you planning on moving to the next one? >> we are in close contact with puc. i am comfortable and confident that they will -- they are moving in the right direction as it relates to the everyday practice is. they are diligently trying to resolve the issues. supervisor farrell: great. >> as it relates to this slide, this table represents the three follow-ups we have determined to be closed. for the audits of pg &e franchise fees, two recommendations were made. recommendations were made. this issue is ongoing and parts